RPM bouncing

Hi all, I have an Audi A4 B7 2.0 Tfsi Quattro. This rpm bouncing is kinda getting annoying. You can feel the car stuttering as well. It happen when I give it gas on a higher gear. As seen in the video I have curse control on on. It the torque converter toasted? The car also has a small air leak which is why the milage is very bad (I assume) which is about 18 mpg on the highway and about 14 mpg in the city.

Any help or advice is very appreciated